Effective January 1, 2007, the so-called "predatory lending bill" was adopted. The new law requires title insurance agents to provide surety bonds and errors and omissions coverage. It further requires the title insurance agents to give notice to borrowers of the availability of an owner's title insurance policy when a loan policy is also being sold in a residential purchase transaction. Further, the statute also requires title agents at closing to offer closing or settlement protection to the lender, the borrower and seller of the subject real property. Lastly, escrow agents will have their account annually reviewed by an independent auditor. These changes are all being made for the benefit of the consumer.
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